PRECIOUS-Gold Edges up; U.S. Fiscal Uncertainty Caps Gains

PRECIOUS-Gold Edges up; U.S. Fiscal Uncertainty Caps Gains

* Euro rises to six-week high vs. dollar
* Spot gold stuck in $1,705.46-$1,730 range -technicals
* Coming Up: Euro zone Markit Mfg PMI, Nov; 0858 GMT

By Rujun Shen

SINGAPORE, Dec 3 (Reuters) - Gold posted minor gains on Monday on strength in the euro, but uncertainty about the U.S. budget talks kept bullion's advances in check.

Underscoring investors' interest in the metal, holdings of gold-backed exchange-traded funds hit a record high and speculators raised their net length in gold for the third straight week.

The euro rose to a six-week high versus the dollar after upbeat China manufacturing data helped trigger stop-loss buying, and the dollar index dropped to a one-month low, making dollar-priced commodities more attractive for buyers holding other currencies.

But the dragging negotiations in Washington to avert the "fiscal cliff", $600 billion worth of tax increases and spending cuts to roll in automatically in early 2013, kept investors on tenterhooks.
Read Full Article>>>